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Yuri is buying an investment property which is expected to need some major repairs in the future. Hence, its current value of $500,000 is expected
Yuri is buying an investment property which is expected to need some major repairs in the future. Hence, its current value of $500,000 is expected to drop to $460,000 over three years. During those three years, Yuri expects to collect rent of $36,000 per year while spending $8,000 a year on operating costs. Assuming Yuri desires an annual rate of return of 5% or better, should she invest in the property?
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